Mr. John McCarthy:

Over the past number of years, local authorities were asked and pretty much exclusively responded to a request to keep their annual rate and valuation unchanged, so much of the increase in rates revenue being collected seen in more recent times is down to two factors. The first is an element of economic buoyance and the second is better collection on the part of local authorities. The performance of local authorities in collecting rates was discussed by this committee previously. The major contributing factors for increased revenue arose from better collection and economic buoyance rather than increases in the annual rate on valuation, ARV.

The Deputy raised the issue of revaluation. The purpose of a revaluation exercise is to try to ensure the valuation system is as up to date as possible and the rates revenue collected by local authorities is spread across businesses in the way it should be. It is important to note the standard practice that, as part of any revaluation exercise, a local authority does not gain financially.